Fair value increments on depreciable assets ________.
A)should be amortized in accordance with the subsidiary's depreciation policies
B)should be amortized in accordance with the parent company's depreciation policies
C)should always be recorded on the subsidiary's books
D)should be expensed immediately

Question

Quizplus · Accepted Answer

Fair value increments on depreciable assets should be amortized in accordance with the subsidiary's depreciation policies. This is because the subsidiary is the one who owns and uses the assets, and therefore they should be the ones to determine how the assets are depreciated. The parent company should not impose their own policies on the subsidiary's assets.

Fair Value Increments on Depreciable Assets ________